Monday 12 May 2014

Enel report Q1 2014

Enel, Q1, 2014,front page

Enel arrived with their first quarter report and the market was happy and the share price increased with over 4%. Where that response came from I really have no clue... this link will take you to the full Enel report Q1 2014.

What we received in this extremely minimalistic report was that they revenue was down by -11%. Group net income was up a little and the debt was up little but the group net ordinary income was down by -8.2%. To me this means three really bad news and one good one so not really something that makes me happy.

Enel, Q1, 2014, highlights

Reading the text in the report then they mention that the sales of electricity was down for both Italy and France as well as sales of gas in both these countries. The amount of generated electricity by Enel was also down. They lost the control of one of their companies called SE Hydropower which seems to me to be the reason for that the group net income is higher and the net ordinary still lower than previous year.

The CEO was so happy saying that the cost reductions they have been pushing thru has really had an effect... I only wonder where that came from because in my book the ordinary revenue should have been much better for that to be true.

Conclusion: As the negative person I am I saw little that made me happy in this short, short report. I guess I simply must have missed to read the page with all the goodie stuff on it! I will still stick to my shares in Enel and the development of them has been much better than what I could ever have imagined when I bought them last year. If you want to take a closer look at Enel then please check out this analysis of Enel 2014.


Chris Bailey said...

Believe that this may help...all a question of 'relative to expectations'. This is the second derivative world we live in!

'Q1 results came in above expectations (Bloomberg consensus). EBITDA increased by 0.5% to €4,036m, 4% above expectations; EBIT increased by 3.5% to €2,608m, 11% above consensus expectations; underlying net income decreased by 8.2% to €895m, 4% above consensus expectations. Net debt came in at €41,539m vs. €39,706m in Q4 2013, roughly in line with expectations'

Fredrik von Oberhausen said...

True Chris! Good remark. Since I never read the expectations of analysts I never adapt my way of thinking towards that either.